By Adedapo Adesanya
The total value of capital importation into Nigeria in the second quarter of 2023 fell further by 9.0 per cent to $1.03 billion from the $1.13 billion achieved in the preceding quarter.
Capital importation refers to the movement of money into Nigeria from other countries for the purpose of investment, trade, or business operations. They are divided into three main investment types: Foreign Direct Investment (FDI), Portfolio Investment, and Other Investments, each comprising various sub-categories.
According to the National Bureau of Statistics (NBS) in its Capital Importation Q2 Data, the largest amount of capital importation by type was received through other investments, which accounted for 81.3 per cent to the tune of $837.34 million.
This was followed by Portfolio Investment with 10.3 per cent amounting to $106.85 million and FDIs amounted to 8.4 per cent or $86.03 million in the period under review.
Comparatively, other investments in the period under review jumped by 92.2 per cent compared to $435.76 million in Q1 while FDIs also increased by 80.7 per cent from $47.60 million. However, there was a drop in Portfolio Investment by 83.5 per cent from $649.28 million.
This could be attributed to the devaluation of the local currency that saw the exchange rate more than double in the quarter under review.
The report showed that the production sector recorded the highest inflow with $605.04 million, representing 58.7 per cent of total capital imported in the period. This was followed by the banking sector, valued at $194.58 million (18.9 per cent), and Shares with $68.63 million (6.7 per cent).
Giving a breakdown by countries of origin, it was revealed that capital importation during the reference period originated largely from the United States with $271.92 million, accounting for 26.4 per cent followed by Singapore and the Republic of South Africa with $177.44 million (17.2 per cent) and $136.95 million (13.3 per cent) respectively.
According to the local destinations of the monies, Lagos state remained the top destination in Q2 2023 with $778.06 million, accounting for 75.5 per cent of total capital, followed by Abuja (FCT), with $194.28 million (18.9 per cent) and Akwa Ibom $33.86 million (3.2 per cent).
First Bank Nigeria Limited received the highest capital into Nigeria in Q2 2023 with $323.13 million (18.23 per cent), followed by Citibank Nigeria Limited with $187.77 million (12.2 per cent) and Rand Merchant Bank with $126.03 (6.5 per cent).
Modupe Gbadeyanka